US Inflation Data Set to Steer Bond Market Ahead of Fed Meeting
The upcoming US inflation reading is set to be the main focus on Friday, following last week's strong non-farm payrolls report. The latest consumer price index for August will be released at 1330 BST, and markets are looking for any indication of whether inflation is still trending towards target.
Nigel Wilson, UK investor strategist at Saxo Markets, notes that key US inflation data is the biggest test for the bond market after a volatile start to September. 'The CPI data...is the last piece of the puzzle for the Federal Reserve ahead of its September 15/16 meeting,' he said.
The August non-farm payrolls report showed the US added 162,000 jobs, well above market expectations, with an additional 55,000 upward revisions to the past two months. This has cemented the view that the Fed doesn't need to worry about the labour market and that it remains short the inflation side of its mandate.
On the corporate front, housebuilder Berkeley Group will release a trading update.